Today in this article we will discuss the LIC’s SIIP ULIP Plan which was launched by LIC (Life Insurance Corporation) of India on 2nd March 2020. This is a ULIP Plan. If you don’t know what is ULIP Plan then I have written a detailed article on what is ULIP Plan? Please read that one for a better understanding.
ULIP plan is the combination of life insurance + insurance plan. The amount which you are paying as premium under this plan will be invested in the stock market.
The amount will be invested in 3 types of funds.
- Debt funds (Low-risk low return)
- Equity funds (High-risk high return)
- Hybrid funds (Moderate risk moderate return)
It basically works like a mutual fund’s SIPs. In ULIP Plan, the benefit you will get is the insurance coverage. The premium you are paying will be divided in two-part. One will go in life insurance coverage and another will go in stock market investment.
LIC’s SIIP ULIP Plan – Eligibility
Let’s check who all can buy this policy and what are the criteria for purchasing this policy.
- Minimum age at entry: 90 days
- Maximum age at entry: 65 years
- Minimum policy term: 10 years
- Maximum policy term: 25 years
- Minimum maturity age: 18 years
- Maximum maturity age: 85 years
There are four options for premium payment, they are as below.
- Monthly Premium: ₹ 4000
- Quarterly Premium: ₹ 12000
- Half-yearly Premium: ₹ 22000
- Yearly Premium: ₹ 40000
There is no limit for the maximum premium amount under this policy.
Commencement of Risk:
If you are buying this policy for a child, then you need to understand that when the risk coverage will start for the child.
If the age of the child while taking the policy is 8 years and above: The risk cover will start immediately
If the age of the child is below 8 years while taking the policy then: risk cover will start
- After completion of 8 years
- After 2 years of the policy tenure.
Whichever is earlier from the above.
Death Benefit:
On death before the date of commencement of risk then, an amount equal to the unit fund value shall be payable.
After commencement of risk: Then the highest of the below will be payable.
- Basic sum assured
- Policy holder’s unit fund value
- 105% of the total premium paid
Basic Sum Assured (BSA)
- Age at entry less than 55 years then 10 times of the annual premium amount.
- Age at entry is more than or equal to 55 years then 7 times of annual premium amount.
LIC’s SIIP ULIP Plan – Riders
- The accidental death benefit is available as an extra rider.
- This benefit is available only during the premium payment term of the base plan.
- The maximum sum assured under accidental benefit is the sum assured of the basic plan and is subject to the maximum of Rs. 1 crore.
Investment Options – LIC’s SIIP ULIP Plan
There are 4 types of investment options available under this scheme.
1) Bond Fund
Investment in Govt Securities / Corporate Debt – 60% to 100%
Short Term investments incl money market instruments – 0% to 40%.
The risk profile is Low Risk.
2) Secured Fund
Investment in Govt Securities / Corporate Debt – 45% to 85%.
Short Term investments incl money market instruments – 0% to 40%.
Investment in Equity – 15% to 55%.
The risk profile is Lower to Medium Risk.
3) Balanced Fund
Investment in Govt Securities / Corporate Debt – 30% to 70%
Short Term investments incl money market instruments – 0% to 40%.
Investment in Equity – 30% to 70%
The risk profile is Medium Risk.
4) Growth Fund
Investment in Govt Securities / Corporate Debt – 20% to 60%
Short Term investments incl money market instruments – 0% to 40%.
Investment in Equity – 40% to 80%
The risk profile is High Risk.